Ann: Appendix 3B - Exercise of Options, page-12

There is no reason WLE should have a low dividend forever. A couple of points:

- while options are put there the share price will be down. In the early days of an LIC options are a net neutral thing IMO. They allow capital to grow if they are exercised, not such a bad thing in a way but in another way they cap the share price and likely reduce it below NAV.
- the options will come and go. So it's a little bit of a waiting game.
- it's takes a few annual cycles for an LIC to normalise. Maybe 3 years. The LIC needs to deliver a decent dividend, this will happen after build up of franking credits and if lucky some realised capital gains and tax return cycles. It take a few years.

None the less, there is a good arguement this one will be fine, but give it a few years.

IMO opinion not a bad allocation for a few percent of a portfolio, an allocation that you can sort of forget about for now, and be nicely surprised in a few years time